10
Developing a Financial Plan
Learning Objectives
By the end of this chapter, you should be able to:
• Explain how the company’s financial goals and strategies link to and provide the structure for the financial plan.
• Define income statement and list its components.
• Define balance sheet and describe the three planning functions necessary to complete it.
• Define statement of cash flows and describe its purpose.
• Explain how preparing a statistical summary of the company’s planned performance and creating individual operating budgets are necessary to finalize the financial plan.
The major components of the company’s operating plan—the ...
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